Elon Musk's X Takes on Big Advertisers in Antitrust Lawsuit Over Twitter Boycott Conspiracy Claims

Lawsuit claims influential ad industry group and major companies colluded after Musk's controversial platform acquisition

Elon MuskPhoto byVariety

In a legal fight that has shaken the advertising community, Elon Musk's company X has filed an antitrust suit against Global Alliance for Responsible Media (GARM) and four large advertisers. The suit claims there was a conspiracy to boycott advertising on X's platform (formerly Twitter) amid concerns about brand safety standards after Musk bought the company in late 2022.

The suit, filed in federal court in Texas, names GARM, CVS, Unilever, Mars and Orsted as defendants. GARM, a voluntary ad-industry initiative designed to prevent brands from being associated with illegal or harmful content, is accused of systematically withholding billions of advertising dollars from X as a result of alleged violations of brand safety standards post-acquisition.

Since Musk took over the platform, X has seen a dive in its core ad business, with many advertisers pulling their spending over fears their ads might run alongside misinformation or hate speech. This legal action is X's latest attempt to recoup lost ad revenue, and CEO Linda Yaccarino has warned that the alleged boycott could threaten the company's long-term survival.

The suit alleges that GARM members agreed to block advertising on platforms not meeting GARM's brand safety standards, which led to a reduction in ad purchases after Musk took over. But on its Web site, GARM says it does not dictate how advertisers spend their resources, and the legitimacy of X's claims against the industry group is in question.

This isn't the first time X has taken legal action over its ailing ad business - it has previously sued organizations such as the Center for Countering Digital Hate and Media Matters. All of these lawsuits - including the one against GARM - highlight Musk's feuds with advertisers and watchdog groups and highlight the tinderbox of online advertising and brand safety.

The legal battle itself is unfolding, but the implications for the advertising industry and online platforms such as X could be far reaching. Watch developments in this high-stakes controversy unfold below.